QBE’s Premiums4Good announces USD904 million in impact investments
QBE Insurance Group (QBE) has grown its Premiums4Good portfolio to USD904 million and is on track to reach its impact investment allocation target of USD1 billion by 2021, according to the 2019-2020 QBE Premiums4Good Investment Impact Report released today.
Premiums4Good is an insurance industry first that sees QBE invest a portion of all customer premiums into investments that have additional social or environmental benefits. Premiums4Good supports QBE’s belief that it can deliver attractive risk-adjusted returns and business value, while also seeking to deliver positive social and environmental impact and resilience for our communities.
QBE Group Chief Investment Officer Gary Brader said the Premiums4Good initiative has recently supported the Company’s response to the COVID-19 pandemic.
“The disruption caused by the COVID-19 pandemic highlights the importance of impact investment and sustainable finance in rebuilding our economies and communities. It has made clear that systemic social and health risks are economic and financial.
“Through Premiums4Good, we’ve been able to invest in a number of global initiatives that are supporting vulnerable individuals and communities hit hard by the health and economic impact of the virus. We’re funding healthcare initiatives, microfinance opportunities for women and small business owners and financial support for charities around the globe.
"Since March 2020, we have invested more than USD40 million in initiatives that support private and public sector projects in countries and communities most exposed to the economic and health effects of the COVID-19 pandemic.
“We’ve invested into a number of World Bank bonds and an International Finance Corporation social bond that support vulnerable communities and help people gain access to essential services, including healthcare and microfinance, as well as creating opportunities for women and small business owners. Premiums4Good has recently also invested in a Ford Foundation social bond that is providing support to charitable organisations globally that have seen their funding diminish due to the COVID-19 pandemic.”
In alignment with QBE’s wider commitment to addressing climate risk, Premiums4Good is also invested in renewable energy projects and other initiatives around the globe that are designed to address the physical and transition risks and opportunities of climate change.
“We recognise there is growing consensus that the financial services sector needs to find ways to direct capital flows into investments that can support the transition to a lower carbon, climate-resilient economy and the investments we make through this initiative support this drive.
“Thanks to the support of our customers and partners we continue to be a leading advocate for the development of impact investments at scale. Further development of these types of investments will enable us, and others in the financial services sector, to efficiently invest for positive change,” Mr. Brader said.
As at June 2020, QBE’s USD904 million portfolio was invested across 66 investments including social impact bonds, social bonds, green bonds and infrastructure - supporting a range of initiatives from renewable energy and sustainable infrastructure, to social services and programs to support vulnerable people and communities round the world. The Company targets growing its impact investment allocation to USD2 billion by 2025.
The QBE Premiums4Good Investment Impact Report is available to download at: https://www.qbe.com/premiums4good
About our Premiums4Good investment approach:
Premiums4Good is an innovative initiative that sees QBE invest everyday premiums to make an extraordinary difference to communities across the globe. Through Premiums4Good, we invest customers’ premiums into investments that have additional social or environmental benefits at no extra cost to the customer.
These investments include social impact bonds, social bonds, green bonds and infrastructure, supporting a range of projects and programs that seek to create positive social and environmental change.
From renewable energy initiatives and sustainable infrastructure, to social services and programs to support vulnerable people and communities – Premiums4Good helps us, together with our customers and partners, make a difference.